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Kids & Money Blog | Allowance Manager

​Children and money management tips, how to's, and useful info to help parents teach kids about money. New posts weekly, check them out today!

5 Reasons Why You Should Give Your Kids Allowance Money

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As a parent, it’s hard to know how much is enough money, or too much, to give to your children. It is a fact that your children will need money, and in most cases, if they do not get it from you, they will not have any.

Kids money

So... Here’s a few good reasons to give your kids’ money & how it will help them learn:

Track How Much Money You Give & What They Buy

Carefully tracking how much money you give to your children and how often you give it is a great way to start teaching them about money management. When your kids run out of money and ask for more, first ask them to look back at what they’ve been purchasing so they realize where their money went.

Mom & Dad Are Not a Bank

In addition to helping your children learn about money management, another good thing allowance helps kids with is that it teaches them that mom and dad are not a bank with unlimited resources. If children are given their own money to manage, they are more likely to start paying attention to how much things cost - something which in turn will help them appreciate the value of their possessions.

Real-world Practical Experience

Giving money to your kids, tracking it, and empowering them to manage it will give them real-world experience. Practical money management is not taught in schools, learned in books, or dealt in a game of Monopoly. You owe it to your kids to give them hands-on, practical experience. This starts by tracking the money you give them and evolves into enabling them to learn from mistakes in a safe environment designed specifically for kids. Giving your kids an allowance and a prepaid debit card for kids is an excellent way to empower them to practice safely managing money.

Saving, Spending, Donating

Some parents like to go even further and split up their children’s allowance into different categories. Some money can be given as a staple no matter what, some money has to go into savings (an excellent idea), and some money can go to charity. These are great ways to get your kids thinking about money and all the different things they can do with it if it is properly managed - philanthropically, entrepreneurially, and even just practically.

Money Needs VS Wants

Jason Alderman, Head of Financial Education at Visa believes that an allowance helps to teach kids the difference between “needs” and “wants”, something kids are never too young to learn! Jason’s advice about allowance and money management is something that all parents should take into consideration. Check out Allowance Manager’s Basic and Pro apps for more ideas on how to help manage your children’s allowance.

How Debit Cards Teach Money Management

Morty (I'm the Pig)

Money management no longer involves the ‘cash is king’ policy of the old days. Everything is plastic now, and for parents who want their kids to grow up money-savvy, it’s an essential teaching element that can’t be ignored. Your child needs a safe debit card to practice making purchase decisions like the Allowance Card from Allowance Manager Pro! But, regardless of the debit card you choose for your kids the best way is to empower them to understand how plastic plays into money management. Many parents these days neglect to include debit cards in their kid’s money management education. As a result, these children are never taught what they need to know, how they need to responsibly manage their debit card, and the fundamental differences between cash & prepaid debit cards.

Like so many other young adults, they will fall prey to unscrupulous credit card companies later in life, rolling debt and demanding banks. The only way to prevent this from happening, is to get them a debit card now, and include it in their money management education.

5 Ways to Teach Kids about Money Management with Debit Cards

  • Fees, interest and charges – With all forms of plastic money, there are fees, interest and late charges. Help your kids understand how these fees work and why they can be applied. For proper money management, your kids need to find out how this works, by practicing using their card. Making mistakes is key to learning, especially when it involves removing money from next month’s allowance. Help your kid learn in a safe environment
  • When to card it, when to draw cash – There will be times when your child needs to draw cash. Having a prepaid or joint account debit card will force them to learn when cash is appropriate. They’ll accumulate charges and will make future decisions based on these money management skills. If you're like other parents and feel cash is careless because you can't supervise cash purchases, find a card like the Allowance Card from Allowance Manager Pro that blocks ATM withdrawals.
Allowance Card from Allowance Manager

Allowance Card from Allowance Manager

  • The vital ‘cards are money’ lesson – Having a card instead of cash, always makes the cardholder feel like they have more to spend, so they generally do spend more. This abstract feeling is what leads to instant debt, overdraft, or other penalties  Having physical money is one thing, but for real money management you need the card spending limits lesson for your kids. Setting spending limits is important so that kids learn money isn't unlimited. Ensure the card you choose allows your family to set spending limits!
  • Tracking your spending habits – It can be tough to explain to a child where their entire $20.00 allowance has gone. When you have a debit card for kids, it tracks their spending habits, so that you can explain how, where and why they have run out of money so soon. Then they improve their money management the following week. Without tracking, it becomes very difficult to manage your family's money. Allowance Manager Basic is free for families looking for an allowance tracking tool that can be used from a computer or mobile phone.
kids money management

kids money management

  • Managing their account – Introducing your child to a debit card, means that they’ll have an account ledger to manage. It’s a great place to save money, learn about additional ways to save or spend wisely, and it will improve your child’s overall money management skills. Make sure the account ledger is easy to use for both you and your children and that everyone is clear on how to access it!

These tips are just 5 ways that debit cards help to educate your child and increase their financial literacy. Money management is really as simple as finding the right tools.

When your kids are brought up understanding that plastic is money, and it should be treated that way, they’ll succeed at any money management task they put their minds to. Best of all, they won’t be naïve enough to be caught in that ‘young adult debt trap.’

Teach your kids about money management today, by getting them a debit card from Allowance Manager that is safe & easy to track, monitor and use anywhere. You owe it to your kids to help them understand that plastic will play a role in their lives!

5 Practical Allowance Tips to Share With Your Kids

Morty (I'm the Pig)

An allowance is like a salary for kids – what they choose to do with it now, gives you insight into what they’ll do with their salaries tomorrow. That’s why you need to share as many practical money management tips with them as you can, while they are still learning. Because we all know the bank of Mom & Dad will close sometime sooner then later. Preparing your child for financial management in the real world, means getting them a debit card for kids. Tracking with a prepaid debit card is the first step to noticing in their negative spending habits.

This debit card will help you track their progress over time, which is an excellent teaching tool for review, discovery and understanding. Your child’s allowance is partly in your hands, and partly in theirs, so don’t be afraid to share tips with them as you go along.

The 5 Kid's Allowance Tips That Make a Difference

  • Daily reviews for monthly improvements – A child learns through repetition, and you need to ensure that yours is always thinking about their interactions with money. An allowance must come with other responsibilities, like reviewing their spending habits, and discussing ways to improve their savings with you each evening. The best way to review and TRACK your child's spending / earning habits are by using Allowance Manager Basic.
  • Saving their slips – Money management is just like any other form of financial control, and it helps to save your receipts. Kids like to be able to touch things, and slips need to be kept so that they can record their cash transactions for later review. Get them to pin these slips to a board, so that their allowance is tracked closely. If your kids will never save slips, have them try Allowance Manager Pro which automatically tracks their spending habits.
  • Behave like a bank – If your kids are young, and they want to borrow more money Kids allowance managementafter their allowance has run out – behave like a bank. Offer them a loan, and charge them interest, and late fees. This quickly teaches kids not to mess around with loans, and they’ll think twice before asking for one later in life.
  • Rewards for saving – Kids money management is all about making the process of managing finances fun and easy, if you follow the rules. Give your kids nice rewards when they reach savings milestones that inflate instead of diminish their allowance. It could be anything, from their favorite meal to a trip somewhere special.
  • Using a money management program – Your child’s money needs to be monitored and reviewed often. That’s why it’s important that you spend an hour with them each night, working together on an allowance tool online. They’ll love interacting on the platform, and you’ll be able to teach them why and how their money has vanished. Try Allowance Manager Basic (always free) because it's the easiest way to manage your kid's allowance!

These 5 practical allowance management tips will help your children become involved in the entire process, until one day, they’re able to manage their money on their own.

Make sure that you explain the ins and outs of money to your kids, on an ongoing basis. An allowance is the first step to financial freedom, and it starts now for your kids! All they need is a nudge in the right direction.

Get your kids started with Allowance Manager Basic right now, share these helpful tips, and set them up for long term financial success, later in life!

Turning Your Children into Entrepreneurs: 12 Safe Ways that Kids can Earn Money

Morty (I'm the Pig)

Do your kids ask you for money all the time? Are you unsure how much money to give your kids and how often? If your kids are too young to get a ‘real’ job, but they are constantly hitting you up for money, teach them a few ways to start making their own money! There’s nothing wrong with teaching your children some entrepreneurial values - in fact, the earlier the better! The early bird gets the worm, and your kids have every chance to become good with money now!!

Making your kids work for extra money is a great way to teach them its value, and that it doesn’t just appear every time they want it! Here are 12 ideas you can give to your kids to help them start earning some money of their own:

1) Car wash. A car wash is a great way for kids to earn some money, and it can be a lot of fun. Best done with a group of kids, have your children round up some of their friends, a few buckets, soap, sponges and a hose, and possibly a vacuum too. Encourage them to find out what all the local car washes are charging so they can offer a competitive price.

2) Garage sale. This is something that is probably more of a family effort, but you can make your child assume the primary organizational/managerial roles. Get your house cleaned out and have your kids make some money at the same time! A considerable amount of planning and research needs to go into a garage sale, so it’s a good thing to do to teach your kids about all aspects of running a business. They will need to advertise the sale in advance so that people know about the sale. This can be their Marketing 101 course. They can make posters and put them up around the neighborhood, and possibly even place an ad in the local paper or on a local community newsletter or forum online, and/or email family, friends and neighbors. Additionally, they will need to come up with the prices for all the items being sold, create an inventory of everything being sold, and manage the money during the actual sale. Managing the money during the sale includes managing the cash transactions and adding up the total profits at the end.

3) Give your child an allowance! If you already give your child an allowance, we suggest offering them a household job incentive to earn more cash on top of their allowance. This could be giving your children the option to help with, or completely take on, big household projects like cleaning out the attic or garage, painting a room, raking all the leaves out of the back yard, shoveling snow, etc.

4) Collecting cans and bottles for recycle. This one is pretty self-explanatory. If your child is really industrious, they might also try contacting local businesses and schools to see if they can acquire any extra cans and bottles from them. Additionally, this could be something that leads into a community effort, a litter clean-up (which would also look very good on a resumé in the future...).

5) Bake Sale / Lemonade Stand / Juice Stand / Mini Farmer’s Market. Like the above garage sale idea, this one involves some planning. Also, your child will probably need a small loan from you in order to purchase the necessary ingredients to be baked/juiced/grown and sold.

6) Dog Walking. This is a fun way for your kid to get some exercise, meet the neighbors, get outside AND make some money! If it becomes something they really love and are good at, you might suggest they build a website or facebook page to advertise their services. Dog walking is something that a child much younger than 12-years of age probably should not do alone though, and you want to ensure that your child is walking dogs in a safe neighborhood and that they always have a fully charged cell phone on them when they do.

7) Babysitting. Once again, this one is pretty self-explanatory! Another task with an age minimum to it, babysitting is best for kids about 14 up and you will want to make sure your child has their phone on them at all times in case of an emergency.

8) Cleaning. Don’t have the time to clean your house? Do you have a cleaner? If not, this is a great task to delegate to your children for some extra cash - and one that you can really enjoy the benefits from!

9) Mowing the lawn. This is a less common task these days, but if you have an able-bodied child and a large enough yard, there is no reason why your child can’t mow the lawn, or other people’s lawns.

10) eBay. Learning how to navigate eBay is a good skill to learn, and once again, the younger the better. Not the most user friendly platform in the world, once mastered, eBay can be a great source of additional income for anyone.

11) Etsy. “Buy and sell handmade or vintage items, art and supplies.” This is a great forum for your kid to master. If they don’t sell their own work, they can help friends or relatives sell theirs. Talk about teaching entrepreneurship :)

12) Computer Help! One perk about being in our children's generation - computers are second nature to them. Kids today can type and speak technology in ways that we as parents could never have even dreamed of when we were their age! If you have friends that needs help with computer-related things, see if your child can help out, and determine an hourly rate with them. Maybe even get them started on Excel early?

For more ideas on helping your kids make and save some extra money, check out these 6 fun activities on money management for kids!

:)